Sony has warned that it will take legal action against anyone engaging in grey importing of its products after scoring a High Court victory over online retailer Lik-Sang.
In his ruling yesterday, Judge Michael Fysh found that Lik-Sang - which offered Japanese PSPs to European consumers via its website - was in breach of intellectual property rights.
Lik-Sang had claimed that it was operating within the law as the company is based in Hong Kong, and has no trading presence in the UK or European Economic Area.
But, as reported by the Financial Times, Judge Fysh ruled that, "The acts of which the complaint is made have, in my view, been perpetrated not in Hong Kong but here in the EEA, and without Sony's consent."
Sony declined to comment directly on the case. However, a spokesperson did tell GI.biz: "The law is clear; grey importing PS2, PSP or PS3 into the EU, without the express permission of SCE is illegal. Therefore, we will utilise the full scope of the law to put a stop to any retailers who chose to do this."
He continued, "Ultimately, we're trying to protect consumers from being sold hardware that does not conform to strict EU or UK consumer safety standards, due to voltage supply differences et cetera; is not - in PS3's case - backwards compatible with either PS1 or PS2 software; will not play European Blu-Ray movies or DVDs; and will not be covered by warranty."
It's no surprise that Sony is offering a strong warning against importing PS3s - there's likely to be a high demand for the consoles in Europe, following the announcement that they won't be officially arriving here until four months after they go on sale in the US and Japan.
The company will doubtless be looking to avoid a repeat of the events of last year, where several retailers, including ElectricBirdLand, ended up in court for selling import PSPs.

Retailer threatened with further legal action over PlayStation 3 imports

Lik-Sang has hit back at Sony after a judge ruled that the online retailer had breached copyright laws by importing Japanese PSP units into Europe.
Marketing manager Pascal Clarysse commented, "Fighting multiple lawsuits in different countries at the same time and paying high premiums to expensive lawyers is an overwhelming situation for a small company like Lik-Sang.
"Launching separate court actions with separate claims and different judges is completely unnecessary, except for the fact that it helps reaching one single target: outspend Lik-Sang to death."
Clarysse went on to refute Sony's assertions that the sale of import PSPs is having an impact on its business, stating, "Contrary to their claim, I don't believe they are suffering 'losses and damages' through Lik-Sang's activity".
Earlier this week, Judge Michael Fysh ruled against Hong Kong-based Lik-Sang in a case brought by Sony to the High Court.
In his ruling Judge Fysh said, "The acts of which the complaint is made have, in my view, been perpetrated not in Hong Kong but here in the EEA, and without Sony's consent."
But according to an official statement issued by Lik-Sang, "Hong Kong's laws are clear when it comes to parallel trade, and the company has no ties whatsoever with the UK."
The statement also claims that Sony intends to obtain a UK injunction against Lik-Sang to prevent the company selling products to consumers in the EEA, and that the platform holder has "threatened to initiate yet another lawsuit to prevent the sales of PlayStation 3 consoles to Europe".
"How this decision will affect Lik-Sang's business is not entirely known at this time," the statement concludes.
"The retailer is currently exploring its legal options and analysing the consequences of this ruling."

Hong Kong, October 24th of 2006 - Lik-Sang.com, the popular gaming retailer from Hong Kong, has today announced that it is forced to close down due to multiple legal actions brought against it by Sony Computer Entertainment Europe Limited and Sony Computer Entertainment Inc. Sony claimed that Lik-Sang infringed its trade marks, copyright and registered design rights by selling Sony PSP consoles from Asia to European customers, and have recently obtained a judgment in the High Court of London (England) rendering Lik-Sang's sales of PSP consoles unlawful.

In a statement issued to GamesIndustry.biz, Sony has denied any responsibility for the closure of Lik-Sang - accusing the online retailer of "sour grapes".
The statement begins by observing that Sony Computer Entertainment has successfully sued Pacific Game Technology, which uses Lik-Sang as one of its trading names, for infringing intellectual property rights.
"Lik-Sang did not contest this case (i.e. they did not turn up and therefore incurred no legal costs). We have been awarded substantial costs against Lik-Sang which have not been paid," the statement claims.
"We would therefore strongly deny that our actions have had anything to do with this website closing (we assume the legal entity is still trading), and would suggest that this release is sour grapes on behalf of Lik-Sang which is aimed to belittle Sony Computer Entertainment and the British judicial system that found against them."
Earlier today, Lik-Sang announced it was going out of business, citing a series of lawsuits filed by Sony as the reason for the closure. The retailer also alleged that several SCE executives purchased import PSP hardware and software on its website.
Sony responded, "The purchasing of PSP consoles by SCE employees would be for investigatory purposes. We would also like to express our surprise at a company releasing personal information about its consumers, as this is contrary to data protection principles around the world."

Hong Kong, October 24th of 2006 - Lik-Sang.com, the popular gaming retailer from Hong Kong, has today announced that it is forced to close down due to multiple legal actions brought against it by Sony Computer Entertainment Europe Limited and Sony Computer Entertainment Inc. Sony claimed that Lik-Sang infringed its trade marks, copyright and registered design rights by selling Sony PSP consoles from Asia to European customers, and have recently obtained a judgment in the High Court of London (England) rendering Lik-Sang's sales of PSP consoles unlawful.

As of today, Lik-Sang.com will not be in the position to accept any new orders and will cancel and refund all existing orders that have already been placed. Furthermore, Lik-Sang is working closely with banks and PayPal to refund any store credits held by the company, and the customer support department is taking care of any open transactions such as pending RMAs or repairs and shipping related matters. The staff of Lik-Sang will make sure that nobody will get hurt in the crossfire of this ordeal.

A Sony spokesperson declined to comment directly on the lawsuit against Lik-Sang, but recently went on to tell Gamesindustry.biz that "ultimately, we're trying to protect consumers from being sold hardware that does not conform to strict EU or UK consumer safety standards, due to voltage supply differences et cetera; is not - in PS3's case - backwards compatible with either PS1 or PS2 software; will not play European Blu-Ray movies or DVDs; and will not be covered by warranty".

Lik Sang strongly disagrees with Sony's opinion that their customers need this kind of protection and pointed out that PSP consoles shipped from Lik-Sang contained genuine Sony 100V-240V AC Adapters that carry CE and other safety marks and are compatible world wide. All PSP consoles were in conformity with all EU and UK consumer safety regulations.

Furthermore, Sony have failed to disclose to the London High Court that not only the world wide gaming community in more than 100 countries relied on Lik-Sang for their gaming needs, but also Sony Europe's very own top directors repeatedly got their Sony PSP hard or software imports in nicely packed Lik-Sang parcels with free Lik-Sang Mugs or Lik-Sang Badge Holders, starting just two days after Japan's official release, as early as 14th of December 2004 (more than nine months earlier than the legal action). The list of PSP related Sony Europe orders reads like the who's who of the videogames industry, and includes Ray Maguire (Managing Director, Sony Computer Entertainment Europe Ltd), Alan Duncan (UK Marketing Director, Sony Computer Entertainment Europe Ltd), Chris Sorrell (Creative Director, Sony Computer Entertainment Europe Ltd), Rob Parkin (Development Director, Sony Computer Entertainment Europe Limited), just to name a few.

"Today is Sony Europe victory about PSP, tomorrow is Sony Europe’s ongoing pressure about PlayStation 3. With this precedent set, next week could already be the stage for complaints from Sony America about the same thing, or from other console manufacturers about other consoles to other regions, or even from any publisher about any specific software title to any country they don’t see fit. It’s the beginning of the end... of the World as we know it", stated Pascal Clarysse, formerly known as the Marketing Manager of Lik-Sang.com.

"Blame it on Sony. That's the latest dark spot in their shameful track record as gaming industry leader. The Empire finally 'won', few dominating retailers from the UK probably will rejoice the news, but everybody else in the gaming world lost something today."